Critical Value: Z = 2

question 184

Multiple Choice

Critical value: z = 2.33. Fail to reject null hypothesis. There is not sufficient evidence to support the claim
that more than half of all those using the drug experience relief.
-In a sample of 88 children selected randomly from one town, it is found that 8 of them suffer from asthma. Find the P-value for a test to reject the claim that the proportion of all children in the town who suffer from asthma is
Equal to 11%.

• A) 0.2157
• B) -0.2843
• C) 0.2843
• D) 0.5686

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Definitions:

WACC

Weighted Average Cost of Capital; a calculated average of the cost of equity and the cost of debt that a company uses to finance its operations, weighted based on the proportion of each finance source in the company's capital structure.

Capital Structure

Capital structure is the mixture of debt and equity that a company uses to finance its operations and growth.

Coupon Rate

The yearly percentage yield from a bond, measured against its nominal value.

Market Price

The current price at which a service or asset can be bought or sold in the market.